All of the following occur whenever a government taxes a product except
A) the quantity consumed of that product falls.
B) the price of that product rises.
C) there will be no excess burden if the government's tax revenue is sufficiently large to offset the deadweight loss.
D) the marginal benefit of the last unit sold exceeds the marginal cost of producing it.
C
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The table above lists six points on the production possibilities frontier for grain and cars. Given this information, which of the following combinations is unattainable?
A) 6 tons of grain and 18 cars B) 4 tons of grain and 26 cars C) 2 tons of grain and 27 cars D) 7 tons of grain and 10 cars
What is perfect competition?
a. A situation in which each firm faces many competitors that sell identical products b. A situation in which a firm has a monopoly on a product c. A situation in which one firm has a distinct sales advantage over other competitors d. A situation in which each firm has a distinctly different version of the same product
In equilibrium, if both uncovered and covered interest parity hold, what condition should exist?
a. World interest rates will be equal. b. Rates of inflation will equalize. c. The forward rate will equal the expected future spot rate. d. The forward rate will decrease as the spot rate rises.
To answer, refer to the following: "Ford built 18 vehicles per auto employee in North America last year, while GM could only manage 12." (The Wall Street Journal) In comparison with GM, Ford had
A. higher total variable cost. B. higher average variable cost. C. lower average variable cost. D. both a and c E. none of the above